Victoria’s power line companies move into EV charging sparks industry backlash

Victorian power distributors want to install kerbside EV chargers across the state, sparking warnings from retail rivals that it could distort market competition.

Concerns about EV infrastructure is one reason why demand is softer than in markets such as Europe.

Some of Victoria’s largest electricity distributors want to start installing kerbside EV chargers across the state and are pushing to overturn longstanding rules that prevent them from expanding into new markets.

The move is drawing strong opposition from energy retailers and charging operators, who warn it could distort competition in a critical growth sector.

The proposal from CitiPower, Powercor and United Energy would allow the trio to install the chargers in areas including where commercial providers have been slow to invest.

If approved, it would mark a significant departure from the distributors’ traditional role of maintaining the “poles and wires” of the electricity grid, and bring them into direct competition with private infrastructure developers.

At the centre of the dispute are Australia’s ring-fencing rules — regulatory protections that prevent monopoly networks from entering contestable markets. Designed to ensure a level playing field, the rules stop distributors from using their privileged access to customer data, network operations and infrastructure to gain an unfair edge in emerging sectors such as EV charging.

The outcome of the Australian Energy Regulator’s (AER) decision, expected later this year, could set a critical precedent for how the country balances infrastructure delivery with market competition during the energy transition. It also raises broader questions about the role regulated monopolies should play in shaping the future of transport.

Labor has earmarked the electrification of transport as a key part of its plan to deliver emission reductions, promising to reduce emissions by 43 per cent from 2005 levels by 2030 and achieve net zero emissions by 2050.

In their submission to the AER, the Victorian distributors argued that the rules are holding back the rollout of essential public infrastructure, especially in under-served regional and low-income areas.

RACV has upgraded its EV charger network across Victoria, enhancing their speed and reliability.

“Victoria’s shift toward electric mobility, as outlined in the [zero emission vehicle road map], requires the rapid expansion of accessible and reliable charging infrastructure at an affordable cost,” the companies said in their submission. “Given our existing infrastructure and experience, we are better placed than others to deliver the rollout of [EV infrastructure] services.”

But energy retailers and private operators argue the rule change could significantly reduce investment incentives in the EV sector by allowing regulated monopolies to undercut private players using publicly funded or regulated assets.

Origin Energy manager of regulatory policy Sean Greenup warned the networks were conflicted and had failed to demonstrate the need for a regulatory waiver.

“Given its access to network data, control of the connection process and costs and its role in setting access prices and associated conditions, we consider [CitiPower, Powercor and United Energy] has a significant conflict of interest,” Mr Greenup wrote to the AER.

“We are concerned that [CitiPower, Powercor and United Energy] can use its information asymmetry to discriminate against third-party providers and utilise the waiver process to expand its role into the provision of electric vehicle charging infrastructure.”

The National Electrical and Communications Association (NECA) went further, insisting the trio could not deliver what is promising.

“It is our considered opinion that there is no genuine evidence proffered in the [CitiPower, Powercor and United Energy] waiver application, or supporting documents, that demonstrates any benefit from the ‘trial’ that cannot be achieved under existing market arrangements, without the need for a waiver,” the group said.

The AER has traditionally taken a cautious approach to ring-fencing exemptions, fearing long-term damage to competition and market integrity. However, the growing urgency around Australia’s EV rollout — and the slower-than-expected pace of private investment — may influence its stance.

While EV sales in Australia are rising, they remain well below levels seen in Europe or China. Federal and state governments are under pressure to accelerate the transition to meet emissions reduction targets, but cost-of-living pressures, high upfront prices and patchy charger coverage remain key barriers to uptake.

Labor in 2023 introduced a Fringe Benefits Tax exemption for eligible electric vehicles provided to employees under novated leases or as company cars. This exemption aims to lower the cost barrier for EV adoption, particularly for those using salary packaging arrangements.

The scheme has proven successful in bolstering uptake, albeit modestly, a trend that is expected to continue to rise. The future of charging, however, remains uncertain. While many EV owners are expected to charge at home, millions of Australians lack off-street parking or live in apartments – making on-road charging imperative.

Originally published as Victoria’s power line companies move into EV charging sparks industry backlash